FeaturedMarket Update

NGXASI Dives Further South on Reactions to Rate Adjustment,…Others

Trending further south, equities trading on the floor of the Nigerian Stock Exchange ended in the negative territory, thus, the lead performance pointer- NGXASI gave up 12Bpts of its trading points, and closed at 52,122.00 from 52,186.52. Safe NGX-Insurance and NGX-OIL&GAS that gained, other observed market indices in this report closed below their respective opening points. Thus, Week to Date, the lead index is 18Bpts below the opening point, while the total gained points in the month July is now 59Bpts. See the index movement table for details.

As traders digest the action of the monetary policy committee after its July meeting, more funds seems to be finding their way out of the equities market. Although the half year earnings season is here and few listed equities are now unveiling their respective half year numbers; the big question is, can reactions to earnings season wade off the ongoing cautious play around the market arena? Please understand that, aside the nation’s high inflation rate that induced another hike in the interest rate, there are other events increasing the risk around the market. Few of which are; the upcoming electioneering up-thick, unstable translational rate of the dollar to naira. As we speak, the value of naira is dropping against several currency, even in other African countries. The price of petrol is equally not helping matters, as the lowest around is N180/ltr. The fearful part is that, there is no sign that the Headline Inflation for the month of July will adjust down, should we have two more high inflation figures, precisely where is the Rate going? Despite all of these, we maintained that, best investment strategy is for investors to stock their respective portfolios now, since prices are diving south. Nevertheless, this should be done in tranches as price dipped.

Technically, the market is putting up very strong resistance against the bear, as can be seen on the lead market index trading pattern, on a daily chart, losses are still dancing around the gains achieved on the 15th and 16th of July. Similarly, on a weekly chart, all points lost within the ongoing week is only a meagre part of points gained in the previous week. Also pointing to a fair position is that, the general market direction is still an uptrend. RSI Crossover (15;6) is a sell WoW, and about to cross to the sell side on a daily Chart. MACD had just crossed the signal line to the sell side, though it currently trade around the bullish region. Two Point MA (15;7) is a buy on a daily chart and sell WoW. MFI currently trends low at 27.029 point with a mild signal of fund inflow. We also noticed a mild positive diversion between price and MFI both on daily and weekly chart.

The total value loss by the Market Capitalization of the listed equities during today’s trading activities was N34.795 billion, same as 12Bpts below the opening value. Meanwhile, trading activities for the day produced 13 ADVANCERS and 22 LAGERS. NGXASI Year to Date gain is now 2,202Bpts while the Market Capitalization Year to Date gain now stood at N5.810 trillion same as 2,606Bpts above the year’s opening value.

Leading on the advancers’ log is Multiverse with 9.55% price appreciation that rounded up its share price at N1.78 from N1.95. Cornerstone Insurance followed with 9.09% price appreciation, thus, rounding up the day’s trade at N0.72 from N0.66. Regency Alliance came third on the log with 8.00% gain, closing at N0.27 from N0.25. AIICO and Learn Africa completed the top 5 price percentage gainers’ log with 4.92% and 4.00% respectively.

Top 5 Trades

Investors did a total of 265 deals on the shares of Zenith Bank, while a total of 264 transactions were made on GTCO shares through today’s trading session. MTNN was next on the top 5 list with 251 transactions, while UBA  and ACCESSCORP completed the top five (5) trades for the day, as shown in the below table.

Top 5 Performance by Volume

Traders traded 74.27 million units of GTCO shares through the day’s trade. UBA followed on the most traded by volume with 16.09 million shares. UACN, Accesscorp, and Zenith Bank completed the top 5 most traded shares for the day.

Top Performance by Value

The Value of the shares traded on GTCO shares (N707.71 Million) was the highest for the day, followed by Zenith Bank where investors exchange N207.88 million worth of shares. MTNN, Aritel Africa, and Nigerian Breweries respectively completed the list as shown in the above table.

On the lager’s log, International Breweries topped with 9.17% loss, having dropped from N5.45 to N4.95, Caverton followed on the log with 8.80%, thus, it ended at N1.14 from N1.25 where it closed on the last trading day. RT-Briscoe was third on the list with 8.33% loss that rounded up at N0.44 from N0.48. Completing the top five (5) price percentage losers’ log are Chams and Lasaco with 7.41% and 7.34% loss respectively. See our top performers’ log for details.

Please note that the following dates are due within the week, the recently announced N2.60 cash dividend by Bua-Cement will be credited to investors account from 21st July, 2022, while Nahco N0.41 dividend and 1FOR5 scrip closure date is today 18th July, 2022.

In Conclusion, we strictly recommend a cautious trade around the market arena, and maintained that, investors should adopt long term investment strategies, while taking advantage of dropping prices. Safe Trade.


Comment here

This site uses Akismet to reduce spam. Learn how your comment data is processed.